Chap 6 Planning

44) Which of the following is NOT a function of planning?

A) defining goals
B) identifying a strategy for attaining goals
C) settling disputes between employees
D) coordinating organizational activities
Answer: C
45) Planning is concerned with
A) both ends and means
B) ends only
C) means only
D) neither ends nor means
Answer: A
46) In informal planning, goals are usually___shared with others in the organization.
A) written, but little is
B) unwritten and little is
C) written and much is
D) unwritten, but much is
Answer: B
47) Informal planning is
A) always performed at the lowest organizational level
B) general and usually lacks continuity
C) performed exclusively by middle managers
D) more specific than formal planning
Answer: B
48) In formal planning, ________.
A) specific goals covering a period of years are defined
B) to maximize flexibility, specific goals are never spelled out
C) very broad general goals are developed
D) goals may be written or unwritten
Answer: A
49) Which of the following is NOT a reason for managers to plan?
A) to give direction to an organization
B) to deal with change
C) to establish goals
D) to establish responsibility for mistakes
Answer: D
50) Planning gives organizations direction that primarily helps them ________.
A) improve teamwork and coordinate activities
B) improve their image in the business community
C) improve morale of middle managers
D) improve morale of all employees
Answer: A

51) Planning gives organizations a way to deal with change that

A) eliminates all uncertainty
B) reduces uncertainty
C) reduces certainty
D) increases ambiguity
Answer: B
52) Organizations that don't formally plan may be more likely to have
A) corrupt managers
B) legal problems
C) multiple departments performing the same task
D) a single department carrying out all company functions
Answer: C
53) One effect of planning on managers is that it forces them to___
A) fear change
B) anticipate and consider the effect of change
C) work to prevent change
D) ignore any change that doesn’t directly affect them
Answer: B
54) managers who fail to plan may___
A) take advantage of change
B) stimulate change
C ) be positively affected by change
D) be adversely affected by change
answer: D
55) which of the following is a frequently cited criticism of formal planning ?
A) plan lock organizations into rigid goals and timetables
B) plan take too long to create
C)plan create resentment within different levels of the organization
D)formal planning works well only for small companies
answer: A
56) One criticism of formal planning is that it focuses on how to beat the competition rather than how to
A) have cordial relationships with the competition
B) focus on new opportunities.
C) balance the organization’s budget
D) cooperate with the competition
Answer: B
57) Failing to discard successful plans from the past is likely to lead to ________.
A) more success because conditions are unlikely to change in the future
B) failure because conditions are likely to change in the future
C) success because of the high quality of the plans
D) failure because of the low quality of the plans
Answer: B

58) Studies of performance in organizations that plan have reached ________ with respect to the
benefits of formal planning.
A) somewhat negative conclusions
B) no conclusion
C) extremely negative conclusions
D) generally positive conclusions
Answer: D

59) Studies of planning show that the key to successful planning is to make sure that the plans
________.
A) cover every possible detail
B) are high in quality and insight
C) are exceedingly simple to follow
D) are not shared with employees
Answer: B

60) In studies in which high-quality formal planning did not lead to higher performance,_____ usually the
culprit.
A) unforeseen events or conditions were
B) demanding employees were
C) stubborn ownership was
D) lack of communication was
Answer: A
61) Formal planning typically leads to which of the following?
A) higher profits
B) lower productivity
C) higher sales, but lower profits
D) tension between different management level
Answer: A
62) The first step in the six-step strategic management process is to
A) analyze the organization's strengths and weaknesses
B) identify the organization's mission
C) identify strategies to reach the organization's goal
D) analyze the opportunities the organization has
63) The first three steps of the strategic management process involve
strategies.
A) planning
B) implementing
C) evaluation
D) identifying
Answer: A
64) A mission statement includes identification of an organization's
A) strengths and weaknesses
B) products and basic philosophy
Answer: B
65) A mission statement does NOT include which of the following?
A) the customers of a company
B) strategy for success
Answer: B
66) An external analysis, the second step of the strategic management process, helps identify
________.
A) the products that a company makes
B) the long-term goals for a company
C) a company's opportunities and threats
D) a company's concern for its employees
Answer: C
67) An internal analysis, the third step of the strategic management process, helps identify
________.
A) opportunities and threats
B) resources and capabilities
C) opportunities and possibilities
D) values and philosophy
Answer: B
68) Which term refers to an organization's capital, workers, and patents?
A) resources
B) capabilities
C) abilities
D) core competencies
Answer: A

69) An organization's resources identify

A) how the organization gets things done
B) where the organization operates
C) when the organization operates
D) what the organization has
Answer: D
70) An organization's capabilities identify
A) what the organization has
B) who the organization is
C) assets that the organization can rely on
D) what the organization can do
Answer: D
71) Together, an organization's resources and core competencies make up which of the following?
A) core philsolophy
B) competitive weapon
C) core assets
D) fundamental beliefs
Answer: B
72) SWOT analysis identifies and analyzes an organization's
A) strengths, weaknesses, opportunities, and threats
B) strategy for competing in the market
C) human resource assets
D) long-term goals
Answer:A
73) SWOT analysis combines
A) a company's mission with its goals
B) external and internal analyses
Answer: B
74) Once SWOT analysis is complete, managers during the analysis.
A) formulate strategies
B) implement strategies
C) evaluate strategies
D) eliminate strategies
Answer: A
75) Which of the following do managers NOT typically use to formulate strategies?
A) find ways to exploit the organization's strengths
B) find ways to protect the organization from external threats
C) find ways to rule out existing organizational opportunities
D) find ways to correct organizational weaknesses
Answer: C
76) The three different types of strategies that managers implement are ________.
A) corporate, private, functional
B) corporate, competitive, functional
C) long-term, short-term, public
D) competitive, non-competitive, corporate
Answer: B
77) A corporate strategy focuses primarily on ________.
A) an organization's mission
B) an organization's strengths
C) an organization's weaknesses
D) an organization's people
Answer: A

78) Which of the following make up the three main types of corporate strategies?
A) growth, vertical integration, horizontal integration
B) growth, retrenchment, renewal
C) renewal, retrenchment, diversification
D) growth, stability, renewal
Answer: D
79) Growth strategies include
A) diversification, concentration, integration, stabilization
B) vertical integration, horizontal integration, concentration, diversification
C) vertical integration, horizontal integration, lateral integration, horizontal concentration
D) integration, allocation, horizontal diversification, vertical diversification
Answer: B
80) General Mills expanding its line so that it sell several different types of Cheerios is an example of
which of the following ?
A) concentration
B) horizontal integration
C) vertical integration
D) diversification
Answer: A
81) A salad dressing company that buys a large olive grove to provide olive oil is practicing which of the
following?
A) concentration
B) forward vertical integration
C) backward vertical integration
D) horizontal integration
Answer: C
82) A sneaker company creating its own stores where it sell only is own brand is an example of
A) forward vertical integration
B) backward horizontal integration
C) forward horizontal integration
D) reverse vertical integration
Answer: A
83) In forward vertical integration, a company becomes its own_____, while in backward integration the
company is its own___
A) supplier; distributor
B) supplier, customer
C) distributor, moniter
D) distributor; supplier
Answer: D
84) Two movie studios combining to form one larger studio is an example of which of the
following?
A) forward vertical integration
B) horizontal integration
C) backward vertical integration
D) diversification
Answer: B
85) The U.S. Federal Trade Commission monitors horizontal integration carefully to make sure
that consumers aren't harmed by which of the following?
A) increased competition
B) too much competition
C) deceptive ads
D) decreased competition
Answer: D

86) When Google purchased YouTube, a company that featured different, but related products, Google
was engaging in which of the following?
A) concentration
B) forward vertical integration
C) backward vertical integration
D) diversification
Answer: D
87) Two companies that both sell fine time pieces combine. What are they doing?
A) diversifying, because they both sell the same products
B) integrating vertically, because they both sell the same products
C) backward vertical integration, because they sharing distribution
D) intergrating horizontaolly, because they both sell similar product
Answer: D
88) A company whose goal is to retain its ideal size and market share is employing which kind of
strategy?
A) non-corporate
B) growth
C) renewal
D) stability
Answer: D
89) Troubled companies seek___to address serious problems.
A) competitive strategies
B) corporate strategies
C) vertical and horizontal strategies
D) renewal strategic
Answer: D
90) To address limited, short-term problems a company is most likely to employ a strategy.
A) retrenchment
B) turnaround
C) doomsday
D) self-critical
Answer: A
91) A company that is on the verge of collapse or bankruptcy might employ this strategy.
A) retrenchment
B) incremental improvement
C) turnaround
D) hunker down
Answer: C

95) The thing that makes your product special is known as your
A) assets
B) destruction device
C) competitive advantage
D) competitive strength
Answer: C
96) Competitive advantages for a high-prestige, premium coffee franchise like Starbucks are likely to
include all of the following EXCEPT
A) high quality
B) lowest prices
C) well-trained employees
D) pleasant venues
Answer: B
97) A cost leadership competitive strategy focuses on which of the following?
A) efficiency
B) innovation
C) elegant design
D) luxury
Answer: A
98) Which of the following would you expect to find in a clothing store that follows a cost leadership
strategy?
A) only finest, most expensive materials
B) pampered, personalized service
C) state-of-the-art design
D) basic, no frills, practical items
Answer: D
99) A company with a differentiation strategy focuses on making its products or services
A) unique and special
B) sintar to is competiors
C) familiar
D) Affordable
Answer: A
100) A differentiation strategy
A) usually focuses on price
B) must focus on price
C) can focus on a brand image
D) can focus on value, but not service
Answer: C